PACRA Maintains Stability Rating of Alhamra Daily Dividend Fund

Alhamra Daily Dividend Fund ("the Fund") represents a Shariah-compliant, low-risk investment solution designed to meet investors' short-term liquidity needs while providing daily income distribution. The Fund's conservative investment framework emphasizes capital preservation through high-quality Islamic instruments with minimal duration exposure, positioning it as a core liquidity management tool for Islamic investors. As of December 2024, the Fund reported Assets Under Management (AUM) of PKR 2.2 billion, reflecting its established presence in Pakistan's Islamic money market segment. In terms of asset class, 82% of assets were allocated to bank placements and 15% to Term Finance Certificates/Sukuks, with the remaining 3% invested in other Shariah-compliant instruments. From a perspective of credit quality, 81% of assets invested in AA rated instruments and 15% in A1 rated avenues, maintaining full compliance with Shariah investment principles. This high-grade allocation, combined with the Fund's ultra-short maturity profile, provides substantial protection against both credit and market risks. With a Weighted Average Maturity (WAM) of just 18 days as of December 2024, the Fund exhibits minimal sensitivity to credit risk movements and market volatility.
Going forward, any material changes in the investment policy and/or compliance with the rating criteria for the assigned rating would have an impact on the ratings.

About the Entity
MCB Investment Management Limited (MCBIM) is a public listed company regulated by the Securities and Exchange Commission of Pakistan (SECP). It holds licenses for asset management, investment advisory, and pension fund management, catering to both Conventional and Shariah investment solutions. As of December 2024, MCBIM manages a diversified portfolio, including 26 Open-End Mutual Funds and 4 Voluntary Pension Schemes, while also maintaining a leading position in Separately Managed Accounts (SMA) and investment advisory services. MCBIM’s major shareholders include MCB Bank Limited (~81.42%), Adamjee Insurance Company Limited (~7.59%), and the general public (~9.28%). Mr. Khawaja Khalil Shah serves as the Chief Executive Officer of the company. The Board comprises a balanced composition of 4 Non-Executive Directors and 3 Independent Directors, ensuring robust governance, objective decision-making, and alignment with regulatory best practices. The Company’s assets under management (AUM) have grown significantly, reaching approximately PKR 588 Billion as of December 2024, reflecting its strong market presence and consistent growth in Pakistan’s asset management industry.